MNI US Morning Fixed Income Technical Analysis

By Les Castell

     Click below for today's MNI US Morning FI Technical Analysis Report -

http://tinyurl.com/h8pyhnq

US 5YR FUTURE TECHS: (U17) Rally Continues, Eyes Two June Highs Next 

*RES 4: 119-020 Median line drawn off Mar & May lows

*RES 3: 118-247 Jun 14 high

*RES 2: 118-197 Jun 6 high

*RES 1: 118-175 Hourly resistance

*PRICE: 118-165 @1024GMT

*SUP 1: 118-105/110 Hourly support

*SUP 2: 118-085/090 Aug 10 low, Aug 7 high

*SUP 3: 118-035/050 Aug 4 low, 6 week rising support line

*SUP 4: 117-317 Jul 27 low

*COMMENTARY* The move back above 118-157 today has removed the immediate threat

of Wednesday's 'shooting star' candle close. A high of 118-175 so far, as we

make our way back towards the Jun 6 high at 118-197 and then more importantly

the Jun 14 high at 118-247. Support rises slightly, 118-105/118-110 initially,

118-085/118-090 below. Not unless we lose the 6 week rising support line, at

118-050 by time today, will some indecision come into play.

US 10YR FUTURE TECHS: (U17) Rally Still Supported By 12 Day Rising Support Line

*RES 4: 127-165 1% volatility band

*RES 3: 127-080 Jun 14 high

*RES 2: 126-290 Jun 26 high

*RES 1: 126-255 Hourly resistance

*PRICE: 126-235 @1035GMT

*SUP 1: 126-105 Hourly support

*SUP 2: 126-060 Aug 10 low

*SUP 3: 126-015 12 day rising support line

*SUP 4: 125-290 Aug 4, Aug 8 lows

*COMMENTARY* Again here, the move back above 126-185 has removed the near term

threat from Wednesday's 'shooting star' candle close. In fact the subsequent

rise has also broken above the key 76.4% Fibo retrace level at 126-215. A high

of 126-255 at the time of writing, as we close in on the Jun 26 high at 126-290.

Support comes initially from  126-105/126-060, the 12 day rising support line at

126-015 below. Above 126-290 and the Jun 14 peak at 127-080 next.

US 30YR FUTURE TECHS: (U17) 155-10 Break Opens Way For 155-29/155-33 Challenge

*RES 4: 157-08 Jun 26 high

*RES 3: 156-23 Jun 22 high

*RES 2: 155-33 1% volatility band

*RES 1: 155-29 76.4% Fibo of 157-08/151-18 

*PRICE: 155-20 @1047GMT

*SUP 1: 154-23 Hourly support

*SUP 2: 154-13 Aug 10 low

*SUP 3: 153-16/17 Jul 31 high, Aug 2, Aug 8 lows

*SUP 4: 152-24/29 Congestion area Jul 28-Aug 1

*COMMENTARY* The rally has now found fresh impetus and a break above the

previously troublesome 155-10 level. Now looking to extend the rise for a

challenge to the 76.4% Fibo retrace level at 155-29, with the upper 1%

volatility band at the slightly higher 155-33 level. As a consequence, nearest

support now comes in at 154-23, ahead of yesterday's 154-13 low. Would

anticipate these to hold any setbacks now, if the recovery is to continue.

     US EURODOLLAR TECHS: (Z17) 98.515 Still Provides Key Near Term Support

*RES 4: 98.630 Jun 14 high

*RES 3: 98.610 Jun 6 high

*RES 2: 98.580/590 Congestion lows May 19-Jun 8, Jun 16 high

*RES 1: 98.560/565 Hourly resistance

*PRICE: 98.555 @1051GMT

*SUP 1: 98.515 Initial recovery high Jul 6, now support

*SUP 2: 98.495 Jul 6 low, 50% of 98.335-98.655

*SUP 3: 98.470 Apr 23 low

*SUP 4: 98.455 61.8% Fibo of 98.335-98.655

*COMMENTARY* Found support from the 50% Fibo retrace level at 98.495 earlier

last month, a recovery has reached the base of the 98.580-98.590 resistance

area. As a result, has become overbought in the near term and now giving back

some of those gains. In this respect, look to 98.515 for support and protection

against a return of the previous downtrend and 98.495 again. Resistance now from

98.560-98.565 ahead of 98.580-98.590 again.

--MNI London Bureau;tel: +44 207-862-7495; email: les.castell@marketnews.com

[TOPICS: MTABLE]